Hubbard v. Phil’s BBQ of Point Loma, Inc.
Unanimous agreement among three appraisers persuades court to adopt their fair market value for a new restaurant, including deductions for reasonable compensation and rejection of DCF approach.
Malik v. Falcon Holdings, LLC
7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.
Tax and Accounting Expertise May Not Be Enough
Trial court did not err by excluding proffered appraisal expert; even though he had 30 years of accounting and real estate experience, he lacked a college degree and had never been qualified as a BV expert.
Court’s Decision Supported by 'Competent, Credible' Expert Evidence
Trial court did not err by accepting expert value that compared wife’s interest in chain of local sandwich stores to those found in mall and airport food courts; and by rejecting expert who valued it based on national franchise comparables.
Davidson v. Davidson (II)
Trial court did not err by excluding proffered appraisal expert; even though he had 30 years of accounting and real estate experience, he lacked a college degree and had never been qualified as a BV expert.
Kapadia v. Kapadia
Trial court did not err by accepting expert value that compared wife’s interest in chain of local sandwich stores to those found in mall and airport food courts; and by rejecting expert who valued it based on national franchise comparables.
BV and MAI Appraiser Go Head-to-Head on Restaurant Discount Rate
Federal district court prefers discount rate for restaurant lost future rents based on industry data and research.
Restaurant Value in Divorce Relies on Mere 2x Multiple of Average Annual EBITDA
Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.
Successful Restaurant Lost Profits Analysis Turns on Comprehensive Research
Comprehensive research and analysis lend credibility to financial expert’s calculations for over $8 million lost profits and lost goodwill for restaurant.
Navigato v. SJ Restaurants, LLC
Federal district court prefers discount rate for restaurant lost future rents based on industry data and research.
Shewbart v. Shewbart (II)
Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.
LB 4 Fish, LLC v. Developers Diversified Realty Corp.
Comprehensive research and analysis lend credibility to financial expert’s calculations for over $8 million lost profits and lost goodwill for restaurant.
The Great Recession: Is It Grounds for a Court’s Reconsideration of Value?
Court denies motion for rehearing of divorce valuation based on unforeseen economic recession of 2007 – 2008.
Can a Trial Court Value a Restaurant Based on Cash Flow But Ignore Gross Sales?
Husband appeals value of a restaurant that included only a portion of his expert report’s (cash flow) without accounting for the other portion (gross sales).
Mistretta v. Mistretta
Court denies motion for rehearing of divorce valuation based on unforeseen economic recession of 2007 – 2008.
Foppe v. Foppe
Husband appeals value of a restaurant that included only a portion of his expert report’s (cash flow) without accounting for the other portion (gross sales).
Nonowner Spouse Signed Buy-Sell: Is She Bound by Its Value in Divorce?
Court finds that when a non-shareholder spouse signs a buy-sell agreement, she is bound by its value in divorce.
‘Dueling Methodologies’ Lead to Dueling Daubert Motions in Restaurant Case
Court denies dueling Daubert motions based on expert methodologies for pricing restaurant chicken sales.
Missing an Expert: A Divorce Court Ignores Income From Restaurant Business
Trial court (divorce) commits reversible error by valuing only the hard assets of a restaurant and ignoring evidence of its substantial annual income and consistent profits.
Inzer v. Inzer
Court finds that when a non-shareholder spouse signs a buy-sell agreement, she is bound by its value in divorce.
Chick-Fil-A v. CFT Development, LLC
Court denies dueling Daubert motions based on expert methodologies for pricing restaurant chicken sales.
Shewbart v. Shewbart (I)
Trial court (divorce) commits reversible error by valuing only the hard assets of a restaurant and ignoring evidence of its substantial annual income and consistent profits.
Lost Profit Testimony Falls Short of Needed Expert Evidence
Owners’ lost profits calculations comparing profits from his restaurant at an old location to those he made at a new location fall short of reasonable certainty standard.
Nieman v. Bunnell Hill Development, Co., Inc.
Owners’ lost profits calculations comparing profits from his restaurant at an old location to those he made a new location fall short of reasonable certainty standard.
Lost Profits Turn on Risk-Free vs. Risk-Adjusted Discount Rates
Bankruptcy court examines forecasts of future performance, discount rates in determination of lost profits.